U.S.-based NewMarket Corp. reported 5.4% higher sales of petroleum additives for the second quarter of 2017 of USD544.2 million compared to the same period a year ago, mainly due to higher volume, which was partially offset by changes in selling prices.
However, operating profit for the second quarter of 2017 was 7.4% lower than the same period a year ago (USD94.9 million vs. USD102.5 million). The decrease was due to lower selling prices and increasing raw material costs, which was partially offset by increased shipments.
NewMarket Corp. is the parent of leading manufacturing companies in the petroleum additives industry, including Afton Chemical Corporation and Ethyl Corporation. NewMarket Corp. is based in Richmond, Va.
Shipments between quarterly periods were up 6.4% from the same period last year, with increases in both lubricant additives and fuel additives shipments. Asia Pacific and Europe were the main regions contributing to the increase in lubricant additives shipments, and Europe was the primary driver for the increase in fuel additives shipments.
The company also announced during its quarterly earnings report that completion of phase two of Afton Chemical’s additive manufacturing facility in Singapore should be completed by the second half of 2017.
Petroleum additives sales for the first half of the year were USD1.1 billion compared to sales in the first half of last year of USD1.0 billion, or an increase of 6.1%. This increase was due mainly to higher shipments, which was partially offset by changes in selling prices.
Petroleum additives operating profit for the first half of the year was USD194.0 million compared to USD202.9 million for the first half of 2016, or a decrease of 4.4%. The decrease was due to lower selling prices and increasing raw material costs, partially offset by increased shipments.
Shipments increased 10.1% between periods with increases in both lubricant additives and fuel additives shipments. The regional drivers for those increases were consistent with the drivers in the second quarter.
Net income for the second quarter of 2017 was USD62.7 million, or USD5.29 per share, 2.6% lower than the net income for the second quarter of 2016 of USD64.4 million, or USD5.43 per share. For the first half of 2017, net income was slightly higher at USD126.7 million, or USD10.69 per share, compared to net income of USD126.3 million, or USD10.65 per share, for the first half of last year.